- Total sales increased 10% to $55.5 million
- Glasses sales increased 21% to $14.0 million
- Glasses Average Order Value increased 73% to $93.07
- Contact lens sales increased 7% to $41.5 million
- 47 th consecutive quarter of year-over-year revenue growth
VANCOUVER, British Columbia, Sept. 12, 2013 (GLOBE NEWSWIRE)- Coastal Contacts Inc. ("Coastal.com" or "the Company") (Nasdaq:COA) (TSX:COA), the leading manufacturer and digital retailer of high-quality glasses and contact lenses today announced financial results for the third fiscal quarter ended July 31, 2013.
"Coastal.com had a strong third quarter demonstrating continued execution and momentum in our business," said Roger Hardy, CEO. "We have secured an anchor tenancy in the online optical category that we believe will become one of the best locations and categories in internet commerce over the next decade. We believe Coastal.com is well positioned in the early stages of several large market opportunities and as such, are making investments for both short and long-term success."
During the quarter, our North American business grew 13% to $27.0 million, while our European business likewise grew 13% to $22.9 million. Our Asia Pacific business declined 9% to $5.6 million, due to foreign exchange fluctuations in Japan.During the quarter, our contact lens business in North America and Europe grew 11% and 10%, respectively, compared to the same period in 2012. During the same period, our contact lens business in the Asia Pacific region declined 10%. Overall, our geographically diversified contact lens business grew 7% to $41.5 million. During the quarter, our contact lens business generated 10% Adjusted EBITDA margins, or $4.3 million, exclusive of a 1% decline due to foreign currency fluctuations in Japan. Approximately 80% of contact lens orders and revenue were generated from returning customers. Coastal.com's glasses business grew 21% over the same period last year to $14 million. Revenues from our glasses business in Canada grew 25% during the quarter while glasses revenue in the United States increased 6%. Growth was driven by a 73% increase in average order value to $93.07. Our average order values for returning glasses customers grew to $112 in the United States and grew to $173 in Canada, up significantly over the prior period in part due to our reduction in ' First Pair Free' orders as well as our focus on serving enduring and attractive segments within the optical category. These increases demonstrate our customers growing confidence in our online order processing, manufacturing and delivery. We continue to pursue partnership opportunities with significant eCommerce and managed care organizations that we expect would extend the reach of Coastal.com's offering to large user bases.